Assume That During the Physical Count of the Inventory of a Large

question 71

Essay

Assume that during the physical count of the inventory of a large corporation for this year,$450,000 of merchandise was counted twice.The error was not detected,and the financial statements were prepared.Identify the individual statements that would be affected and explain the effect the count error would have on each.(Omit income tax considerations. )

---

Definitions:

Customer Feedback

The information, insights, and input that a business receives from individuals who use its products or services, which can be used for improvement and growth.

Sales And Profitability

measures of the effectiveness of a company's operations; where sales refer to the revenue from goods or services sold, and profitability is the extent to which this revenue exceeds the costs incurred.

Historical Approach

A method of research that examines past events and developments to understand the present and anticipate future trends.

Desired Performance

A target level of performance set by an individual or organization to achieve specific goals.